- The government will introduce reforms before any renewal of licences in 2028
- The distribution companies must improve their performance
- Tinubu has approved a N4 trillion bond to clear verified debts
The Minister of Power, Chief Adebayo Adelabu, has warned that the Federal Government will not renew the licences of electricity distribution companies that fail to meet performance standards when their current licences expire in 2028.
Eko Hot Blog gathered that he gave the warning during a session on the power sector at the 2025 Nigerian Economic Summit in Abuja.
EDITOR’S PICK
- PHOTO STORY: Alhaja Toyin Williams Celebrates Her 70th Birthday, Surrounded by Family And Friends In Houston
- FG Sets Up Committee to Launch Confederation of African Fashion
- Lagos State Donates Food, Cash to Ten Orphanages for Public Service Week
The session, titled “Uninterrupted Power Supply: The Industrial Imperatives,” brought together key stakeholders to discuss lasting solutions to Nigeria’s power challenges.
Adelabu identified the inefficiency of the distribution companies as one of the major obstacles to achieving stable electricity in the country.
He said the sector’s progress has been hindered by poor performance from some distribution firms, which continue to fail in meeting expectations.
According to him, the government will introduce reforms before any renewal of licences in 2028.
“The distribution companies must improve their performance. Those lacking technical expertise, financial strength, or commitment to national growth will not have their licences renewed,” Adelabu stated.
He added that the government aims to ensure every household is metered within the next five years.
To address the sector’s liquidity crisis, Adelabu revealed that President Bola Tinubu has approved a N4 trillion bond to clear verified debts owed to power generation companies and gas suppliers.
He explained that the government is also working on a targeted subsidy framework to protect vulnerable households and maintain market stability.
Chief Executive Officer of Azura Power, Edu Okeke, urged the government to focus on improving liquidity and streamlining dollar-based gas pricing.
Managing Director of Nigeria LNG Limited, Philip Mshelbila, emphasized that fair and transparent gas pricing would encourage investment in gas production and supply, which remains essential for Nigeria’s energy stability and long-term power generation goals.
FURTHER READING
- Tinubu to Chair Joint Security Talks with Council of State, Police Council
- 7 Common Foods Nigerians Eat Daily That Secretly Damage The Liver
- PDP Commences Delegates List Compilation for National Convention in November
CLICK HERE TO WATCH VIDEO OF THE WEEK
